The greatest economic comeback since the times of the Roman Emperor, Justinian, continues. Despite the hype from the media, it is clear the economy is just treading water. Personal income dropped and spending has slowed because of it. The average American is becoming poorer as a result of this anemic economic growth. The American dream is withering on a vine and the media acts as if things are not that bad.
U.S. incomes fell for the first time in nearly two years in August and consumers dug into their savings to keep spending, according to a government report that showed the impact of the weak jobs market.
The Commerce Department said on Friday spending rose 0.2 percent, in line with economists’ expectations, after increasing 0.7 percent in July. When adjusted for inflation , however, spending was unchanged after rising 0.4 percent in July.
Consumer spending accounts for about 70 percent of U.S. economic activity.
Income slipped 0.1 percent, the first decline since October 2009, with private wages and salaries dropping $12.2 billion after increasing $23.8 billion in July.
Economists had expected income to edge up 0.1 percent.
Read the rest: Prices Rising, But Spending Slows as Income Posts Drop
The Obama Boom continues to roar!
Tags: Consumer Spending, Income, The Obama Boom
